CIRCULATION Co.,Ltd. (7379) AI Stock Analysis

• Market Cap: ¥7.77B
• Dividend Yield: N/A
• Average Volume (3M): 14.30K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.73
• Revenue Growth: 14.88%
• EPS Growth: 48.97%
• Country: JP
• Employees: 262
• Sector: Industrials
• Sector Strength: 70
• Industry: Consulting Services
• EPS (TTM): 6.02
• Shares Outstanding: 8,664,700
• 10 Day Avg. Volume: 4,900
• 30 Day Avg. Volume: 14,300
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ―

CIRCULATION Co.,Ltd. shows a strong financial position with no debt and robust equity usage. However, recent operational inefficiencies and cash flow declines are concerns. Technical indicators suggest some downward pressure, and the valuation appears moderate without dividends. These factors combine to a stable but cautious stock outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt enhances financial stability and reduces leverage risk, providing a solid foundation for future growth and resilience against economic downturns.

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term strategic expansion and client acquisition.

Profitability Metrics

Robust profitability metrics suggest effective cost management and pricing strategies, contributing to sustainable earnings and potential reinvestment in business development.

Negative Factors

Operational Inefficiencies

Operational inefficiencies can hinder profit margins and growth potential, necessitating strategic improvements to maintain competitive advantage and financial health.

Declining Cash Flow

A decline in cash flow from operations can impact the company's ability to fund new projects and manage day-to-day expenses, potentially affecting long-term financial stability.

Margin Pressure

Decreasing EBIT and EBITDA margins indicate rising costs or pricing pressures, which can erode profitability and necessitate strategic adjustments to maintain financial performance.

CIRCULATION Co.,Ltd. Business Overview & Revenue Model

Company Description

CIRCULATION Co.,Ltd. provides consulting support services. It offers Pro-sharing Consulting, a management problem-solving support service; Open Idea, a new business start-up support service; FLEXY, a CTO/engineer/designer support service; and business succession support that focuses on people, organizations, and growth strategies. The company also provides Nomad Journal, a media that disseminates the way of working and pursing a parallel career to freelancer and professionals; and Benefit plan, a welfare system for freelancers that offers collaboration with freelance associations. CIRCULATION Co.,Ltd. was incorporated in 2014 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CIRCULATION Co., Ltd. generates revenue primarily through its consulting services. The company engages with clients across various industries to provide tailored solutions that address specific business challenges. Key revenue streams include fees from management consulting projects, where CIRCULATION delivers strategic advice to improve business performance, and business development services, which help clients expand their market presence. Additionally, the company earns income from human resource services, assisting organizations in optimizing their workforce management. CIRCULATION's ability to leverage a network of experienced professionals and industry experts is a significant factor contributing to its earnings. While the company may engage in partnerships to enhance service offerings, specific details on such collaborations are not publicly disclosed.

CIRCULATION Co.,Ltd. Financial Statement Overview

Summary

CIRCULATION Co.,Ltd. demonstrates solid financial health with strong equity and profitability metrics. The balance sheet is strong with zero debt, and profitability is robust, though there are operational inefficiencies and cash flow challenges.

Income Statement

The company has shown consistent revenue growth over the past few years, with a slight decline in the recent year. Gross profit and net profit margins are healthy, though both EBIT and EBITDA margins have decreased in the latest year, indicating potential operational inefficiencies. Historical growth trends have been strong, supporting a solid income statement performance.

Balance Sheet

The company's balance sheet is strong, with zero total debt and high stockholders' equity, leading to a favorable equity ratio. The return on equity is robust, showcasing effective use of equity to generate profits. The absence of debt reduces leverage risk, enhancing financial stability.

Cash Flow

Cash flow from operations has declined significantly in the latest year, affecting free cash flow negatively. The free cash flow to net income ratio is healthy, but the drop in operating cash flow is concerning. Nonetheless, historical trends show good cash flow management, albeit with recent pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.00B	7.66B	8.15B	7.10B	5.51B	4.00B
Gross Profit	3.31B	3.09B	3.34B	2.93B	2.33B	1.71B
EBITDA	417.59M	291.74M	605.49M	555.49M	478.24M	-116.92M
Net Income	262.69M	176.72M	368.94M	346.78M	294.62M	-109.37M
Balance Sheet
Total Assets	3.74B	3.44B	3.75B	3.34B	3.91B	1.80B
Cash, Cash Equivalents and Short-Term Investments	2.49B	2.36B	2.64B	2.27B	3.00B	1.15B
Total Debt	0.00	0.00	0.00	0.00	846.67M	1.22B
Total Liabilities	946.91M	816.20M	1.04B	1.03B	1.85B	1.73B
Stockholders Equity	2.79B	2.62B	2.71B	2.32B	2.06B	67.47M
Cash Flow
Free Cash Flow	0.00	10.47M	363.18M	232.68M	556.91M	-137.91M
Operating Cash Flow	0.00	22.97M	381.94M	283.20M	576.38M	-111.00M
Investing Cash Flow	0.00	-16.18M	-17.41M	-66.56M	-38.75M	-31.59M
Financing Cash Flow	0.00	-294.77M	9.70M	-945.72M	1.31B	894.75M

CIRCULATION Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 897.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7379, the sentiment is Positive. The current price of 897 is above the 20-day moving average (MA) of 896.25, above the 50-day MA of 886.08, and above the 200-day MA of 700.12, indicating a bullish trend. The MACD of 5.43 indicates Positive momentum. The RSI at 74.39 is Negative, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7379.

CIRCULATION Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7039	76 Outperform	¥7.40B	10.00		3.07%	11.81%	13.05%
7379	71 Outperform	¥7.77B	28.53		―	14.88%	48.97%
6578	70 Outperform	¥2.53B	14.64		2.61%	82.83%	―
4490	66 Neutral	¥6.74B	15.89		―	3.77%	―
6560	65 Neutral	¥9.08B	10.62		1.52%	16.18%	68.41%
7034	65 Neutral	¥8.52B	35.49		―	125.74%	-109.66%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%